Wintrust stock target cut to $132 at Stephens, retains Overweight

On Wednesday, Stephens analyst Terry McEvoy adjusted the price target for Wintrust Financial (NASDAQ:WTFC) to $132 from the previous $145, while maintaining an Overweight rating on the company’s shares. With the stock currently trading at $106.66, this target implies significant upside potential. According to InvestingPro, Wintrust has demonstrated remarkable dividend reliability, having maintained payments for 26 consecutive years and increased them for 11 straight years. McEvoy’s assessment followed Wintrust’s first-quarter earnings for 2025, which showcased robust performance indicators, including $650 million in loan growth, marking a 6% annualized increase, and over $1 billion in deposit accumulation, an 8% annualized uptick. The company’s revenue growth remains strong at 8.88% over the last twelve months, with analysts forecasting 13% growth for fiscal year 2025, as revealed in InvestingPro’s detailed analysis.

Wintrust’s differentiated business model was credited for its ability to achieve record net interest income last quarter, with a net interest margin (NIM) expansion of 5 basis points to 3.56%. McEvoy highlighted the company’s balance sheet as relatively rate neutral, suggesting a stable NIM in the upcoming quarters. This stability is significant as it provides a consistent financial metric for evaluating the company’s profitability.

The analyst also noted seasonality in property and casualty (P&C) insurance premium finance is expected to drive loan growth into the high-single digits in the second quarter of 2025. Furthermore, despite minor fluctuations in net charge-offs, which were reported at 11 basis points and 13 basis points over the last two quarters, the allowance for loan losses saw a modest increase of 3 basis points quarter-over-quarter.

McEvoy concluded by emphasizing Wintrust’s lower-risk growth strategy, which he regarded as increasingly valuable in the current economic climate where organic growth could potentially plateau for the broader industry. The Overweight rating reflects Stephens’ positive outlook on Wintrust’s stock, despite the revised price target.

In other recent news, Wintrust Financial has reported its first-quarter 2025 earnings, which exceeded analysts’ expectations. The company achieved an earnings per share (EPS) of $2.69, surpassing the forecasted $2.48. Revenue, however, was slightly below expectations, totaling $643.11 million against the anticipated $643.19 million. Record net interest income of $526 million and strong loan growth were significant contributors to this performance. Additionally, Wintrust maintained a stable net interest margin of 3.56% and reported a loan growth rate of 6% on an annualized basis.

DA Davidson reaffirmed its Buy rating for Wintrust Financial, with a price target set at $140. The firm’s analyst cited the company’s resilience amidst economic uncertainties, emphasizing its stable balance sheet and robust credit profile. Wintrust’s strategic reserve buildup was highlighted as a precautionary measure against potential risks. The bank’s prudent actions and strong financial metrics continue to instill confidence among investors and analysts.

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